Barron's reports that U.S. investors have filed more securities arbitration claims in 2009 than in all of 2008. 4,991 claims have been filed thus far in 2009.
Mandatory arbitration--which prevents a case from going straight to court--is essentially the sole recourse for investors who feel they have been harmed by a broker or advisor.
The arbitration system is run by Finra, which serves as the self-regulation arm of the securities industry.
The overall success rate of securities arbitration claims has crept-up to 45% through August of this year:
While mandatory arbitration is currently the only option for investors who feel they have been harmed, Congress has been considering--largely in light of the financial crisis--eliminating the system and allowing cases to go straight to court.
Source: Barron's
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